From Volume 2 Issue 4 of Connected.
In the dynamic world of manufacturing, optimizing efficiency while minimizing costs remains a critical objective for companies seeking to thrive in a competitive landscape. As industries evolve and consumer demands shift, the pressure to stay cost-effective has never been more profound. To achieve sustainable cost reductions and streamline operations, original equipment manufacturers (OEMs) must be armed with good strategy and innovative practices.
One of the most significant ways for OEMs to reduce costs is by focusing on minimizing commissioning time. OEMs must undergo various tests both before and after the manufacturing equipment arrives onsite. The ability to shorten the setup and testing time is valuable for cutting labor costs and increasing OEMs’ productivity. Commissioning time includes the days that OEMs must allocate after receiving equipment onsite, which involves equipment setup and conducting various tests to ensure that machines were not damaged during transportation. OEMs will compare onsite test results with those collected before shipping the equipment to the customer’s location. The ability to expedite this process allows OEMs to install more machines within the allocated timeframe. OEMs can leverage tools or components that expedite the installation process, thereby reducing the time required for equipment setup and testing. Although time-saving measures can lead to cost savings, it remains essential for OEMs to diligently perform these tasks during the commissioning time to ensure proper equipment functionality and to prevent errors resulting from negligence.
Another effective method for OEMs to cut costs is by focusing on minimizing waste. Six Sigma and Lean Manufacturing can be among the most effective ways to cut costs, but OEMs need to plan methodically to ensure that their cost reduction efforts aren’t affecting them negatively. OEMs first map out their process workflow, which can include gathering accurate data on cycle times and identifying areas for improvement. Accurate data is important for deciding where improvements can be made. Data such as high cycle times or non-value-added time can be improved to ensure productivity is increased and costs are decreased. Kirby Risk has knowledgeable specialists who can help manufacturers reduce waste by offering services such as infrared thermography, vibration analysis and oil analysis to ensure machines are running at peak performance, productivity is unaffected and quality is consistent.
Investing in new technologies and automation can help OEMs cut costs. Automation improves labor costs, productivity and sustainability by providing a more efficient production process and reducing the chance of human error. It also enhances safety and enables better decision-making through accurate data gathering. New technologies like 3D printing can help OEMs save money in research and design, offering cost savings in storing prototypes as well as other benefits such as easier access to blueprints stored digitally. Augmented reality (AR), another emerging technology, holds the potential to deliver crucial information and training to customers more effectively. By enabling a hands-on learning approach to maintenance training, AR minimizes disruptions to production schedules and eliminates the need for dedicated training time.
Facility layout evaluation presents yet another avenue to enhance efficiency and trim expenses. Forbes magazine mentioned, “Restructuring operations can make teams more efficient, reduce bottlenecks and increase productivity. However, plans must be executed strategically.” To achieve this, OEMs should work with the end users to address cluttered areas. A streamlined layout should target high-traffic sections such as paths frequented by trolleys or forklifts ferrying supplies to production lines. A thoughtfully designed facility layout enhances workflow, diminishes energy consumption, expedites production changeovers and bolsters overall productivity, all while accommodating scalability and adaptation.
OEMs must continually strive to ensure that their machines improve operations and maintain production efficiency while managing operating expenses. By embracing these strategies, companies can chart a course toward heightened productivity and profitability.
ABB Installation Products understands the requirements of OEMs and offers an array of products tailor-made for cost-cutting in manufacturing. Notably, their Pos-E-Kon® interconnects are used in heavy-duty housing. These connectors are easy to install, which saves time and labor. The Pos-E-Kon® interconnects cater specifically to end users’ needs by allowing the end user to easily disconnect and reconnect wires when setting up or changing manufacturing equipment. ABB's extensive product line, coupled with industry insights, empowers them to provide solutions that align with OEM goals. For example, their LU universal elbow combines four components into one, preserving efficiency and reliability, while reducing the number of SKUs OEMs must manage. ABB’s material handling solutions also encompass strategic delivery planning based on customer schematics, product labeling for easy identification and timely deliveries to minimize waiting period costs. ABB’s TyRap® tools and Color-Keyed® products enhance installation efficiency, saving both time and labor costs, all while excelling in challenging environments. Harnessing such offerings enables OEMs to optimize operations and achieve substantial cost reductions.